LG reportedly losing some Apple iPad 2 display orders to Samsung

Apple is switching the source of  9.7 inch displays for the Apple iPad 2, replacing LG with fellow Korean firm Samsung. LG's screens have failed a 'drop test' during which the blacklight units failed. Additionally, LG was unable to get the yield rate up to the level that would meet Apple's requirements. The story, which was published by DigiTimes and has not been confirmed by any of the parties involved, noted that LG had shipped between 2.5 million and 2.6 million of the screens in July, well short of the 4 million per month that Apple had expected from the company. On the other hand, Samsung is said to have shipped 2 million units last month, double the amount that was expected from them.

While Samsung is a great choice in theory for Apple to order the screens from, the two are engaged in a vicious legal battle involving patent infringements that has turned nasty. Also, Samsung's Galaxy Tab 10.1 tablet competes in end markets with the iPad 2. Another choice would be CMI which has affiliate status with Foxconn, the contract manufacturer that assembles the tablet. However, CMI's monthly target is just 1 million screen per month and this will be raised to 1.5 million screens produced per month

In the last quarter, Apple doubled the number of iPads shipped to 9.25 million as the prior three month period saw Apple afflicted by a major backlog. According to DigiTimes' sources, LG could retain its status as lead source for the displays, but only if the current problems can be solved quickly.

source: DigiTimes via AppleInsider